Changes in interest rates, inflation, and exchange rates are the main components of macroeconomic risks (financial … form of flexible inflation targeting (FIT). It is characterized by an explicit concern over exchange rates. The empirical …

reflects low saving, higher growth with respect to the rest of the world and the high dollar, private saving is much lower than …

euro area and Japanese inflation dynamics are best explained by Taylor-style contracts, while Buiter …-Jewitt/Fuhrer-Moore contracts perform somewhat better in fitting U.S. inflation dynamics. We are unable to fit Calvo-style contracts to inflation … backward-looking element. The completed model matches inflation and output dynamics in the United States, the euro area and …

the economies at the periphery of the world monetary system from monetary policy shocks in the center. The only exception … is capital controls which enable the periphery countries, in particular China, to maintain a certain degree of monetary … to the predominance of the US dollar in the currently asymmetric world monetary system. This would provide an incentive …